Arab Financial Markets Await Developments After Regional Escalation

Arab financial markets have been experiencing significant ups and downs due to geopolitical tensions and economic factors.  (Reuters)
Arab financial markets have been experiencing significant ups and downs due to geopolitical tensions and economic factors. (Reuters)
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Arab Financial Markets Await Developments After Regional Escalation

Arab financial markets have been experiencing significant ups and downs due to geopolitical tensions and economic factors.  (Reuters)
Arab financial markets have been experiencing significant ups and downs due to geopolitical tensions and economic factors. (Reuters)

Arab financial markets have been experiencing significant ups and downs due to geopolitical tensions and economic factors.

Investors are closely watching developments following the Israeli-Iranian escalation to gauge its impact on investments.

Mohammed Al-Farraj from “Arbah Capital” believes these fluctuations will continue for a while as investors assess how military tensions between Iran and Israel affect the global economy.

“These fluctuations are expected to persist in the coming days. Investors are carefully evaluating the impact of geopolitical factors, such as ongoing military tensions between Iran and Israel, on the global economy,” Al-Farraj told Asharq Al-Awsat.

However, he thinks the instability is temporary and markets will stabilize in the long run.

“With continued rise in interest rates and inflation, the likelihood of temporary market corrections increases, possibly leading to declines in stock prices,” said Al-Farraj.

Moreover, he sees opportunities for investors to buy stocks at lower prices during these fluctuations and benefit from long-term growth.

“These corrections present excellent investment opportunities for investors with long-term vision, allowing them to buy stocks at discounted prices and benefit from their long-term growth,” explained Al-Farraj.

Despite worries, certain sectors like energy, healthcare, technology, education, mining, insurance, and banking offer promising investment prospects.

After the Eid holiday, Arab markets reopened with fluctuations. Most closed lower, except for Muscat and Amman.

In Saudi Arabia, the main stock index, TASI, concluded its first session after the Eid holiday down by 38.52 points, or 0.30%, at 12666.90 points, with a liquidity of 6 billion riyals ($1.6 billion), influenced by declines in the banking and basic materials sectors.

Kuwait and Qatar also saw declines, while Jordan’s market closed higher. Muscat’s market ended slightly up.

Overall, market movements reflected the uncertainties surrounding the regional tensions.



Saudi Arabia to Sell 0.64% Aramco Stake

Saudi Arabia is offering 1.545 billion Aramco shares. Reuters
Saudi Arabia is offering 1.545 billion Aramco shares. Reuters
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Saudi Arabia to Sell 0.64% Aramco Stake

Saudi Arabia is offering 1.545 billion Aramco shares. Reuters
Saudi Arabia is offering 1.545 billion Aramco shares. Reuters

Saudi Arabia is selling a 0.64% stake in oil giant Aramco, a statement said on Thursday.

Saudi Arabia is offering 1.545 billion Aramco shares and the offering period will commence on June 2.

The price range is expected to be between SAR 26.70 and SAR 29.00 per share.